Most banks and lenders will require a minimum deposit of 5 per cent of the value of the property you are purchasing, before they will approve you for a home loan. Depending on the lender and your individual situation, you may be able to fund your deposit from a range of sources, including genuine savings, monetary gifts, inheritances and first home owner incentives.
However, most lenders will require at least a portion of your deposit to come from genuine savings. It is important to understand that the more money you can save for your deposit the better off you will be. Therefore your home loan repayments will be reduced and you’ll save money over the life of your loan.
If you don't have the deposit required, you may be able to make use of family equity, also known as a limited guarantor loan.
The most common form of family equity is where a family member, offers their existing property as security for a portion of the home loan, generally around 20 per cent.